The raise itself doesn’t tell the whole story.
October was a tough month for retirees on Social Security. That’s because the Social Security Administration (SSA) had to delay its cost-of-living adjustment (COLA) announcement due to the extended government shutdown, leaving many seniors in the dark.
But at this point, seniors have known for a while that a 2.8% COLA is coming to Social Security in 2026. That’s a slightly higher raise than the 2.5% raise Social Security recipients got at the start of 2025.
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But even though seniors have known about their 2.8% COLA since late October, there was a big piece of the puzzle missing that was only more recently revealed. And based on that information, we can now get a more accurate read on how much the typical Social Security benefit might increase in the new year.
Here’s how much Social Security benefits might actually go up in 2026
The SSA puts the average monthly Social Security retirement benefit before next year’s 2.8% COLA at $2,015 per month. Once that COLA takes effect, the average retiree benefit is expected to rise to $2,071 for an increase of $56.
Some seniors on Social Security may indeed get a $56 raise. But many won’t for one big reason — the cost of Medicare Part B is going up.
Most seniors don’t pay a premium for Medicare Part A, which covers hospital care. But there are premiums associated with Part B, which covers outpatient services.
Seniors who are enrolled in Social Security and Medicare pay their Part B premiums out of their monthly benefits automatically. In 2026, the standard monthly Part B premium is rising from $185 to $202.90. That’s a $17.90 increase.
When we subtract $17.90 from $56, we get $38.10. So that’s how much the average Social Security check might increase for beneficiaries who are covered by Medicare Part B.
It’s also worth noting that higher earners commonly pay more for Part B due to being subject to income-related monthly adjustment amounts (IRMAAs). However, seniors with high enough earnings to face IRMAAs typically have a good amount of income outside of Social Security. So they may not be as worried about how much their monthly benefits are increasing in the new year.
Don’t just rely on your Social Security COLA to improve your financial picture
If you’ve been struggling to cover your costs this year, you should not expect your upcoming Social Security COLA to do much to improve your finances. If you’re not on Medicare and you’re eligible for a monthly increase of $56, that’s only an additional $672 a year. If you’re on Medicare and your benefits are only rising by $38.10 per month, that’s an extra $457 a year.
Granted, any boost to your income may be better than nothing. But if you’ve really been having a difficult time affording your bills, you may need to gear up to make significant changes in 2026. Those changes could include:
- Returning to work in some capacity, whether it’s a part-time job, gig work, or consulting
- Downsizing to a smaller home
- Renting out a portion of your home for steady monthly income
- Relocating to a cheaper part of the country where your Social Security benefits give you more buying power
- Moving in with a grown child for a while to build some retirement savings
While the average Social Security benefit should increase modestly in 2026, it may not do a whole lot for you, especially if living costs keep rising as well. Taking matters into your own hands could be your ticket to alleviating some of your financial stress and setting yourself up for more stability going forward.